Wealthtech is reshaping Singapore’s wealth management sector as both startups and incumbent financial institutions ramp up digital transformation to meet rising investor demand for accessible, affordable, and personalized investment services, according to a new report by Quinlan and Associates and Allfunds Asia.
The report shows that 85% of Singaporean investors have used digital wealth services in the past two years. Among them, 59% have used robo-advisors while 27% accessed AI-powered guidance tools.
Traditional face-to-face interactions with wealth managers are declining, with investors showing a clear preference for digital channels such as online platforms (49%), mobile apps (39%), and chat-based support (30%).
In response, established financial institutions are enhancing their wealthtech offerings. Phillip Securities introduced SMART Portfolio in 2017, providing automated rebalancing and digital risk profiling.
DBS Bank launched Client Connect in 2021, an AI-driven CRM platform designed to help relationship managers prioritize clients based on data insights.
Meanwhile, Singlife revamped its investment arm GROW—formerly Navigator Investment Services—to enable more customized advice.
Fintech players are also gaining market share by offering cost-efficient and user-friendly platforms. Endowus, a licensed digital advisor in Singapore and Hong Kong, increased its revenue from $0.4 million in 2020 to $6.6 million in 2023.
StashAway, a licensed fund manager operating in five markets including the UAE and Malaysia, saw revenue grow from $2.3 million to $9.5 million over the same period.
The report attributes the digital shift to investor dissatisfaction with conventional services. Key challenges include high fees, cumbersome onboarding, outdated reporting, and lack of fee transparency.
Notably, 64% of investors said they were unhappy with management fees, while 65% did not understand how their wealth managers were compensated.
As digital-native solutions gain traction, the report concludes, both startups and incumbents will need to invest in data-driven innovation to stay relevant in Singapore’s rapidly evolving wealth management space.